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Quarterly Investor Package

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JBGS Divider

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Management Letter

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November 3, 2020

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To Our Fellow Shareholders:

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We hope this letter finds you healthy and out of harm’s way during these difficult times. We are operating effectively in the new normal of the slow reopening of many businesses and countless hours of two-dimensional Zoom calls. Our rent collections during the third quarter remained stable at 99.4%, 98.5%, and 63.1% for office, residential, and retail, respectively, consistent with second quarter results. While we expect the economic fallout from the pandemic to worsen and continue to adversely impact our business in the short term, we remain focused on advancing our growth plans with special emphasis on entitling valuable development opportunities in our land bank, particularly in National Landing. Amazon’s hiring and investment in its new 4+ million square foot headquarters that we are building only continue to grow. In addition, Virginia Tech officially launched the inaugural academic year of its planned $1 billion Innovation Campus in National Landing and received approvals from the City of Alexandria to advance construction of its permanent facilities.

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To reap the benefits of these powerful growth engines, we continue to advance the entitlement and design of a number of strategic development opportunities, including 10 projects totaling 5.6 million square feet, which we added to our Near-Term Development Pipeline in the third quarter. This comprises approximately 3,100 residential units in National Landing, including 1900 Crystal Drive (800 units) which could commence construction early next year. Given our ample liquidity, this economic downturn presents a unique opportunity for us to grow our multifamily portfolio alongside Amazon during a period of potentially lower construction costs and an expected significant increase in future residential demand. Although the pandemic is far from over, the relative stability of the Washington, DC metro economy and Amazon’s continued strong growth allow us to turn our attention to the next phase of our growth in National Landing and other select high-growth submarkets in the region.

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While we hope that our letter captures your full and undivided attention today, we understand that the presidential election, the pandemic, and the continued reckoning with racial injustice are also important priorities. Consequently, based on feedback from investors, we have simplified this letter to provide our shareholders with an overview of JBG SMITH, including the details of our strong growth potential and key highlights from the quarter. As part of this effort, you can now find the specifics of our operating portfolio performance in our quarterly earnings release and financial supplemental, which follow this letter. In addition, we intend to release an updated investor presentation in mid-November ahead of the NAREIT conference, in which we plan to participate.

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JBG SMITH Overview

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We own and operate urban mixed-use properties concentrated in the highest growth submarkets of the historically recession-resilient Washington, DC metro area. Our concentration in these locations, our substantial portfolio of operating and development opportunities, and our market leading platform uniquely position us to capitalize on the significant growth anticipated in our target markets for many years to come.

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Over half of our holdings are in the National Landing submarket in Northern Virginia, where Amazon’s new headquarters will house 38,000 or more planned employees, and Virginia Tech’s new $1 billion STEM graduate

school and Innovation Campus will be located. Amazon’s growth in National Landing is expected to increase the daytime population in the submarket from approximately 50,000 people today to nearly 90,000 people in the future, representing dramatic growth of about 70%, according to estimates from Amazon and the National Landing Business Improvement District. The balance of our portfolio is concentrated in what we believe are the highest growth submarkets in the DC metro region, the majority of which are within a 20-minute commute of the growing technology hub in National Landing. We believe the strong technology sector tailwinds created by Amazon, the Virginia Tech Innovation Campus, and our National Landing Smart City initiative (described below) will allow us to drive substantial NAV per share and NOI growth in our operating portfolio and our extensive 15 million square foot development pipeline, of which 75% is planned as multifamily.

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We have ample liquidity and balance sheet capacity to fund our growth, including the now fully entitled 1900 Crystal Drive, which could commence construction early next year. This would represent the first new development start in our 5.6 million square foot Near Term Development Pipeline, which includes approximately 3,100 multifamily units in National Landing. In addition to the sale of $1.6 billion of non-core, primarily office assets we have completed since our launch in 2017, we intend to opportunistically sell at least another $1.5 billion in the coming years. Recycling the proceeds from these sales will not only fund our planned growth, but it will also further advance the intentional shift of our portfolio to majority multifamily.

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Key Updates

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Development Growth Pipeline

Our growth pipeline consists of six recently delivered operating assets (four multifamily and two office), two under-construction assets (one multifamily and one office, the office portion of which is 100% pre-leased to Amazon), and 15 million square feet of land for new development. The six recently delivered assets were delivered over the past 12 months and are in various stages of lease up, with the office buildings 84% leased as of the third quarter. We expect these six assets, plus the two assets in our Under-Construction portfolio, to deliver approximately $65 million of incremental annualized NOI when stabilized between now and the end of 2022.

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We divide our 15 million square foot land portfolio into our Near-Term Development Pipeline and our Future Development Pipeline, the latter of which comprises potentially longer-term opportunities. As a reminder, this 15 million square feet excludes the 2.1 million square feet of land held for sale to Amazon, which we expect to close on by the end of 2021, and exchange into an income producing multifamily asset. This quarter we modified the definition of our Near-Term Development Pipeline to include the most accretive and strategic development opportunities in our growth pipeline – those projects on which we expect to start construction over the next 36 months, subject to the receipt of full entitlements, completion of design, and market conditions. This definition differs from our past practice in that the time frame is longer (36 months versus 18 months), and that some assets need final entitlements and design. That said, all the assets in this category are consistent with relevant sector use and density specifications. Therefore, we believe the risk of not receiving final approvals is relatively low. We believe this definition provides clearer insight into the projects that we expect to comprise our next phase of growth.

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We have 10 assets comprising 5.6 million square feet of potential density in our Near-Term Development Pipeline as of the third quarter, 4.3 million square feet (75%) of which are multifamily projects located in National Landing, the Ballpark, and the Union Market/NoMa/H Street submarkets. Five of these projects are expected to deliver approximately 3,100 multifamily units within a half mile of Amazon’s new headquarters, including the 800 units at 1900 Crystal Drive. We intend to invest in new office development subject to preleasing, and multifamily development as market demand evolves, matching delivery dates with Amazon’s expected job growth in National Landing. As is always the case, these potential investment opportunities will be subject to our rigorous return requirements and our ability to maintain prudent leverage and liquidity levels.

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Even in a post-COVID-19 world, we remain highly confident that our plan to build new multifamily units in National Landing is one of the most value-accretive, near-term capital investment opportunities in our portfolio. Where other technology companies have announced plans for a more dramatic shift to remote work, Amazon has publicly indicated its intention to bring people back to the office and has increased its commitment to add office space across the country. Its recent purchase of the Residence Inn by Marriott, adjacent to our Pen Place development site in National Landing, further strengthens its overall commitment to the submarket. Finally, Amazon’s 38,000 or more planned jobs in National Landing would approach its scale in Seattle, where approximately 20% of its employees live within a short walk or bike to work. A similar proportion in National Landing would drive demand for over 7,500 new housing units, which aligns well with our plans to deliver new multifamily supply over time.

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Smart City

The DC metro area, ranked second in the country for tech talent by CBRE, is particularly attractive to companies in the defense and cybersecurity, cloud/edge computing, internet of things (IoT), and artificial intelligence (AI) technology sectors. The arrival of Amazon’s new headquarters and the Virginia Tech Innovation Campus validate National Landing as a differentiated and sought-after location for innovators.

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We believe a key advantage in continuing to attract companies to National Landing is our investment in next-generation connectivity infrastructure such as dense, redundant, and secure fiber networks, data center access, and world-class 5G connectivity, specifically tailored to innovators. Our substantial control of real estate in National Landing allows JBG SMITH to serve as a “digital placemaker” -- making investments to bring world-class connectivity infrastructure and service providers to the market.

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In September, we took our first step in implementing that strategy by investing $25.3 million to control a majority of the available licensed Citizens Broadband Radio Service (CBRS) wireless spectrum (for 5G signal broadcast) for the geographic license areas stretching across National Landing. In addition to other investments that we are making in the submarket, we believe this investment in CBRS spectrum will allow us to control the process of attracting and partnering with best-in-class service providers, making National Landing among the first 5G-operable submarkets in the nation. It will also provide us with valuable tenant inducement tools, such as the ability to offer ubiquitous and redundant fiber connectivity and private cellular networks over 5G. These features are increasingly important to technology companies, especially innovators in cybersecurity, IoT, AI, and cloud computing.

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Virginia Tech Innovation Campus

In August, former Dean of Engineering at Cornell University, Lance Collins, took the helm at the $1 billion Virginia Tech Innovation Campus, which launched its inaugural semester (virtually) this fall. This powerful demand driver sits immediately adjacent to approximately 1.9 million square feet of development density that we own in National Landing and a new, under-construction Metro station, all approximately one mile south of Amazon’s new headquarters. On this campus, Virginia Tech intends to create an innovation ecosystem by co-locating academic and private sector uses to accelerate research and development spending, as well as the commercialization of technology. When the Innovation Campus is fully operational, Virginia Tech plans to graduate approximately 750 master students and 150 PhD students in STEM fields annually. The Innovation Campus will include 675,000 square feet occupied by Virginia Tech, and construction on the fully entitled initial phase is expected to commence in 2021.

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Financial and Operating Metrics

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The current adverse impact of the ongoing pandemic is reflected in our operating results for the quarter. For the three months ended September 30, 2020, we reported a net loss attributable to common shareholders of $22.8

million and Core FFO attributable to common shareholders of $40.2 million or $0.30 per share. Same Store NOI decreased 4.4%, reflecting a decline from our multifamily portfolio offset by growth from our commercial portfolio. We believe Same Store NOI was reduced by $14.3 million attributable to the COVID-19 pandemic. Excluding this impact, we believe our Same Store NOI would have increased by 14.6% compared to the third quarter of 2019. Our operating portfolio ended the quarter at 86.7% leased and 82.5% occupied. For second generation leases, the rental rate mark-to-market was negative 0.4%. As of September 30, 2020, our Net Debt/Total Enterprise Value was 33.9%, and on a trailing 12-month basis, our Net Debt/Adjusted EBITDA was 7.3x. Our Net Debt/Annualized Adjusted EBITDA decreased to 7.7x in the third quarter but remains higher than typical levels due to the impacts of COVID-19 on income streams from our multifamily portfolio, parking, and the Crystal City Marriott. Notwithstanding these short-term impacts, we believe our low leverage and strong liquidity leave us well positioned to continue managing through this downturn while also capitalizing on future growth opportunities.

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During the third quarter, NOI was reduced by at least $14.8 million attributable to the COVID-19 pandemic, comprising $5.1 million of reserves and rent deferrals for office and retail tenants, a $4.9 million decline in NOI in our same store multifamily assets, a $3.9 million decline in parking revenue, and a $0.9 million decline in NOI from the Crystal City Marriott. While the COVID-19 pandemic has impacted these income streams in the short term, we expect them to recover post pandemic. The $5.1 million of reserves and rent deferrals for office and retail tenants that impacted NOI include (i) $1.3 million of rent deferrals, (ii) $2.3 million of rent deferral from expected lease modifications, and (iii) $1.5 million of other reserves. Our financial results in future periods will not be negatively impacted by the collectability of deferred rents from these tenants because we have fully written off the receivable balances. No revenue related to these executed or pending rent deferrals is included in our third quarter NOI, Adjusted EBITDA or Core FFO.

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Operating Portfolio

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Office Trends

During the third quarter, our rent collections remained consistent with the second quarter, with the bulk of non-collections concentrated in retail and co-working. As expected, the low population count in our office buildings negatively impacted our parking income during the quarter. While an improvement over last quarter, leasing activity remains sluggish, with tour activity at 25% of historical volumes. Tour activity is likely to track the pandemic and decline through the winter as the pandemic worsens. Given overall economic uncertainty, tenants remain much more likely to renew existing leases than make new, long-term lease commitments.

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The Washington, DC metro area is demonstrating its historic recession-resilience relative to other gateway markets. According to Bureau of Labor Statistics data, August 2020 unemployment for the DC metro region was 6.9%, which is far below 13.0% for the New York metro area, 10.8% for Boston, and 9.0% for San Francisco. Likewise, Kastle Systems, which tracks physical office occupancy by metro area, shows DC at 23.6% compared to 16.6% in New York and 14.5% in San Francisco. During the last recession, JLL data showed that our market saw office rent declines of only 8% compared to more than a 16% average across Boston, San Francisco, and New York.

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Multifamily Trends

COVID-19 continues to adversely impact residential leasing demand with overall market demand below normal levels during what is typically prime leasing season. Occupancy has also been negatively impacted by work-from-home initiatives, which have driven younger renters to give up their urban apartments and move in with parents or take advantage of low interest rates to pursue home purchases. While both of these trends have accelerated, we have seen fewer tenants moving from urban to suburban multifamily buildings, suggesting little evidence of a flight to suburban multifamily in our market.  All told, on a same-store basis across the market, these trends have had a

negative impact of 2% to 3% on occupancy compared to the third quarter of 2019, according to CoStar data. Same store rents have reacted similarly over the same time period with a 7% to 8% decrease reflected in CoStar data.

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As of the third quarter of 2020, only 3,500 units were underway, with the vast majority (69%) of those starting in the first quarter, pre-COVID-19. This is a material reduction from last year, when roughly 6,200 units started construction. The slowdown in new starts is directly related to the pandemic, but it is also representative of a slowing multifamily pipeline, a trend we have referenced previously. From 2010 through 2019, the DC market saw an average of 9,200 units delivering per year, with a peak of 15,000 units in 2014. By contrast, 2020, 2021, and 2022, will likely only see an average of 6,700 units delivering per year. Given required construction timelines, it is unlikely that those numbers will move materially, suggesting the potential for real supply limitations just as demand returns to the market post-COVID-19.

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Apartment List’s city-level data on multifamily markets also show that DC and Arlington (home to 88% of our multifamily portfolio) are particularly insulated when compared to other gateway cities. Since March, DC and Arlington rents fell 8.0% and 7.2%, respectively, compared to declines of 17.8% in San Francisco, 11.6% in New York, and 8.9% in Boston. Like office, our residential market was resilient during the last recession, with CoStar data from that period reporting flat rent growth in our market versus rent declines of over 8% in the same group of other gateway cities.

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Retail Trends

As expected, the retail sector continues to suffer dramatically, as many retailers remain closed or struggle to generate sales volume with different operating models, such as takeout.  As a result, we have seen a significant decline in rent receipts and increasing demand for relief. We are working with smaller, non-credit tenants on a case-by-case basis to help them survive until sales return to more stable levels. We continue to believe that these arrangements represent a worthwhile investment in the long-term survival of these tenants, which play a key role in our placemaking. As we head into the winter, and the pandemic worsens, it is likely that we will experience additional retail closures with restaurants unable to take advantage of outdoor seating.

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Capital Allocation

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We target investment opportunities with the highest potential return, including share repurchases, which we also evaluate for the impact on our liquidity. During the third quarter, we repurchased 1.4 million shares at an average price of $26.64, bringing our total repurchases to $38.4 million for the quarter. As a reminder, our Board of Trustees authorized a share repurchase program up to $500 million, and we have purchased a total of $79.6 million thus far.

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Environmental, Social, and Governance

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In October, the Washington Post announced that JBG SMITH was ranked third in its 2020 Top Workplaces in the Washington, DC region in the “large company” category. This award is a testament to the quality, depth, and strength of our team, as well as our company culture. In addition, JBG SMITH recently won six NAIOP awards in various best of categories for West Half, 4747 Bethesda Avenue, and 1900 N Street.

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As the COVID-19 pandemic continues, we remain focused on the health and safety of our customers, our team, our business partners, and our community. As we look ahead, we believe that JBG SMITH is well positioned to take advantage of the significant tailwinds from Amazon’s new headquarters, the Virginia Tech Innovation Campus, and our connectivity investments in National Landing. We further believe that our active portfolio recycling efforts and substantial development pipeline will enable us to continue our shift toward multifamily, particularly in high growth

submarkets. We have ample liquidity and balance sheet capacity to capitalize on this growth, and we believe that the historical recession resilience of the Washington, DC metro market coupled with the continued strong growth of our technology sector economy will enable us to deliver significant long-term NAV per share and NOI growth.

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We wish you health and strength during these tumultuous times, and we appreciate your continued support of our team and our business. Now, more than ever, we will continue to work hard to maintain your trust and confidence.

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Thank you and stay healthy

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W. Matthew Kelly

Chief Executive Officer

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Section Two – Earnings Release

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Earnings Release

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CONTACT

Moina Banerjee

Executive Vice President, Head of Capital Markets

(240) 333-3655

mbanerjee@jbgsmith.com

JBG SMITH ANNOUNCES THIRD QUARTER 2020 RESULTS

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Bethesda, MD (November 3, 2020) - JBG SMITH (NYSE: JBGS), a leading owner and developer of high-growth, mixed-use properties in the Washington, DC market, today filed its Form 10-Q for the quarter ended September 30, 2020 and reported its financial results.

Additional information regarding our results of operations, properties and tenants can be found in our Third Quarter 2020 Investor Package, which is posted in the Investor Relations section of our website at www.jbgsmith.com. We encourage investors to consider the information presented here with the information in that document.

Third Quarter 2020 Financial Results

Nine Months Ended September 30, 2020 Financial Results

Operating Portfolio Highlights

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During the third quarter, we entered into rent deferral agreements with tenants totaling $1.3 million. Additionally, we recognized $2.3 million of credit losses for rent deferral agreements that are in negotiation. Our financial results in future periods will not be negatively impacted by the collectability of deferred rents from these tenants because we have fully written off the receivable balances. No revenue related to these executed or pending rent deferrals is included in our third quarter NOI, Adjusted EBITDA or Core FFO.

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Development Portfolio Highlights

Under-Construction

Near-Term Development Pipeline

Future Development Pipeline

Third-Party Asset Management and Real Estate Services Business

Balance Sheet

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Investing and Financing Activities

Subsequent to September 30, 2020

Dividends

About JBG SMITH

JBG SMITH is an S&P 400 company that owns, operates, invests in and develops a dynamic portfolio of high-growth mixed-use properties in and around Washington, DC. Through an intense focus on placemaking, JBG SMITH cultivates vibrant, amenity-rich, walkable neighborhoods throughout the Capital region, including National Landing where it serves as the exclusive developer for Amazon’s new headquarters. JBG SMITH’s portfolio currently comprises 20.7 million square feet of high-growth office, multifamily and retail assets, 98% at our share of which are Metro-served. It also maintains a development pipeline encompassing 17.1 million square feet of mixed-use development opportunities. For more information on JBG SMITH please visit www.jbgsmith.com.

Forward-Looking Statements

Certain statements contained herein may constitute “forward-looking statements” as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Consequently, the future results of JBG SMITH Properties (“JBG SMITH”, the “Company”, "we", "us", "our" or similar terms) may differ

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materially from those expressed in these forward-looking statements. You can find many of these statements by looking for words such as “approximate”, "hypothetical", "potential", “believes”, “expects”, “anticipates”, “estimates”, “intends”, “plans”, “would”, “may” or similar expressions in this earnings release. Currently, one of the most significant factors that could cause actual outcomes to differ materially from our forward-looking statements is the adverse effect of the current pandemic of the novel coronavirus, or COVID-19, on our financial condition, results of operations, cash flows, liquidity, performance, tenants, the real estate market and the global economy and financial markets. The extent to which the COVID-19 pandemic continues to impact us and our tenants depends on future developments, many of which are highly uncertain and cannot be predicted with confidence, including the scope, severity, and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, and whether the residential market in the Washington, DC region and any of our properties will be materially impacted by the expiration of various moratoriums on residential evictions, among others. Moreover, investors are cautioned to interpret many of the risks identified under the section titled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 as being heightened as a result of the ongoing and numerous adverse impacts of the COVID-19 pandemic. We also note the following forward-looking statements: the impact of COVID-19 and the ensuing economic turmoil on our Company, net operating income, same store net operating income, net asset value, stock price, occupancy rates, revenue from our multifamily and commercial portfolios, operating costs, deferrals of rent, uncollectable operating lease receivables, parking revenue, and burn-off of rent abatement; the impact of disruptions to the credit and capital markets on our ability to access capital, including refinancing maturing debt; changes to the amount and manner in which tenants use space; whether we incur additional costs or make additional concessions or offer other incentives to existing or prospective tenants to reconfigure space; whether the Washington, DC region will be more resilient than other parts of the country in any recession resulting from COVID-19; our annual dividend per share and dividend yield; annualized net operating income; in the case of our construction and near-term development assets, estimated square feet, estimated number of units and in the case of our future development assets, estimated potential development density; expected key Amazon transaction terms and timeframes for closing any Amazon transactions not yet closed; planned infrastructure and education improvements related to Amazon’s additional headquarters and the Virginia Tech Innovation Campus; the economic impact of Amazon’s additional headquarters on the DC region and National Landing; the impact of our role as the exclusive developer, property manager and retail leasing agent in connection with Amazon’s new headquarters; our development plans related to Amazon’s additional headquarters; whether any of our tenants succeed in obtaining government assistance under the CARES Act and other programs and use any resulting proceeds to make lease payments owed to us; whether we can access agency debt secured by our currently-unencumbered multifamily assets timely, on reasonable terms or at all; whether the delay in our planned 2020 discretionary operating asset capital expenditures will have any negative impact on our properties or our ability to generate revenue; and the allocation of capital to our share repurchase plan and any impact on our stock price.

Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. These factors include, among others: adverse economic conditions in the Washington, DC metropolitan area, including in relation to COVID-19, the timing of and costs associated with development and property improvements, financing commitments, and general competitive factors. For further discussion of factors that could materially affect the outcome of our forward-looking statements and other risks and uncertainties, see “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of

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Operations” and the Cautionary Statement Concerning Forward-Looking Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and other periodic reports the Company files with the Securities and Exchange Commission. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on our forward-looking statements. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements to reflect events or circumstances occurring after the date hereof.

Pro Rata Information

We present certain financial information and metrics in this release “at JBG SMITH Share,” which refers to our ownership percentage of consolidated and unconsolidated assets in real estate ventures (collectively, “real estate ventures”) as applied to these financial measures and metrics. Financial information “at JBG SMITH Share” is calculated on an asset-by-asset basis by applying our percentage economic interest to each applicable line item of that asset’s financial information. “At JBG SMITH Share” information, which we also refer to as being “at share,” “our pro rata share” or “our share,” is not, and is not intended to be, a presentation in accordance with GAAP. Given that a substantial portion of our assets are held through real estate ventures, we believe this form of presentation, which presents our economic interests in the partially owned entities, provides investors valuable information regarding a significant component of our portfolio, its composition, performance and capitalization.

We do not control the unconsolidated real estate ventures and do not have a legal claim to our co-venturers’ share of assets, liabilities, revenue and expenses. The operating agreements of the unconsolidated real estate ventures generally allow each co-venturer to receive cash distributions to the extent there is available cash from operations. The amount of cash each investor receives is based upon specific provisions of each operating agreement and varies depending on certain factors including the amount of capital contributed by each investor and whether any investors are entitled to preferential distributions.

With respect to any such third-party arrangement, we would not be in a position to exercise sole decision-making authority regarding the property, real estate venture or other entity, and may, under certain circumstances, be exposed to economic risks not present were a third-party not involved. We and our respective co-venturers may each have the right to trigger a buy-sell or forced sale arrangement, which could cause us to sell our interest, or acquire our co-venturers’ interests, or to sell the underlying asset, either on unfavorable terms or at a time when we otherwise would not have initiated such a transaction. Our real estate ventures may be subject to debt, and the repayment or refinancing of such debt may require equity capital calls. To the extent our co-venturers do not meet their obligations to us or our real estate ventures or they act inconsistent with the interests of the real estate venture, we may be adversely affected. Because of these limitations, the non-GAAP “at JBG SMITH Share” financial information should not be considered in isolation or as a substitute for our financial statements as reported under GAAP.

Non-GAAP Financial Measures

This release includes non-GAAP financial measures. For these measures, we have provided an explanation of how these non-GAAP measures are calculated and why JBG SMITH’s management believes that the presentation of these measures provides useful information to investors regarding JBG SMITH’s financial condition and results of

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operations. Reconciliations of certain non-GAAP measures to the most directly comparable GAAP financial measure are included in this earnings release. Our presentation of non-GAAP financial measures may not be comparable to similar non-GAAP measures used by other companies. In addition to "at share" financial information, the following non-GAAP measures are included in this release:

Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), EBITDA for Real Estate ("EBITDAre") and Adjusted EBITDA

Management uses EBITDA and EBITDAre, non-GAAP financial measures, as supplemental operating performance measures and believes they help investors and lenders meaningfully evaluate and compare our operating performance from period-to-period by removing from our operating results the impact of our capital structure (primarily interest charges from our outstanding debt and the impact of our interest rate swaps) and certain non-cash expenses (primarily depreciation and amortization on our assets). EBITDAre is computed in accordance with the definition established by the National Association of Real Estate Investment Trusts (“NAREIT”). NAREIT defines EBITDAre as GAAP net income (loss) adjusted to exclude interest expense, income taxes, depreciation and amortization expenses, gains and losses on sales of real estate and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments of unconsolidated real estate ventures. These supplemental measures may help investors and lenders understand our ability to incur and service debt and to make capital expenditures. EBITDA and EBITDAre are not substitutes for net income (loss) (computed in accordance with GAAP) and may not be comparable to similarly titled measures used by other companies.

“Adjusted EBITDA,” a non-GAAP financial measure, represents EBITDAre adjusted for items we believe are not representative of ongoing operating results, such as transaction and other costs, gain (loss) on the extinguishment of debt, distributions in excess of our investment in unconsolidated real estate ventures, lease liability adjustments and share-based compensation expense related to the Formation Transaction and special equity awards. We believe that adjusting such items not considered part of our comparable operations, provides a meaningful measure to evaluate and compare our performance from period-to-period.

Because EBITDA, EBITDAre and Adjusted EBITDA have limitations as analytical tools, we use EBITDA, EBITDAre and Adjusted EBITDA to supplement GAAP financial measures. Additionally, we believe that users of these measures should consider EBITDA, EBITDAre and Adjusted EBITDA in conjunction with net income (loss) and other GAAP measures in understanding our operating results.

Funds from Operations ("FFO"), Core FFO and Funds Available for Distribution (“FAD")

FFO is a non-GAAP financial measure computed in accordance with the definition established by NAREIT in the NAREIT FFO White Paper - 2018 Restatement. NAREIT defines FFO as net income (computed in accordance with GAAP), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control and impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity, including our share of such adjustments for unconsolidated real estate ventures.

"Core FFO" represents FFO adjusted to exclude items (net of tax) which we believe are not representative of ongoing operating results, such as transaction and other costs, gains (or losses) on extinguishment of debt, distributions in excess of our investment in unconsolidated real estate ventures, share-based compensation

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expense related to the Formation Transaction and special equity awards, lease liability adjustments, amortization of the management contracts intangible and the mark-to-market of derivative instruments.

"FAD" is a non-GAAP financial measure and represents FFO less recurring tenant improvements, leasing commissions and other capital expenditures, net deferred rent activity, third-party lease liability assumption payments, recurring share-based compensation expense, accretion of acquired below-market leases, net of amortization of acquired above-market leases, amortization of debt issuance costs and other non-cash income and charges. FAD is presented solely as a supplemental disclosure that management believes provides useful information as it relates to our ability to fund dividends.

We believe FFO, Core FFO and FAD are meaningful non-GAAP financial measures useful in comparing our levered operating performance from period-to-period and as compared to similar real estate companies because these non-GAAP measures exclude real estate depreciation and amortization expense and other non-comparable income and expenses, which implicitly assumes that the value of real estate diminishes predictably over time rather than fluctuating based on market conditions. FFO, Core FFO and FAD do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements and should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as a performance measure or cash flow as a liquidity measure. FFO, Core FFO and FAD may not be comparable to similarly titled measures used by other companies.

Net Operating Income ("NOI") and Annualized NOI

“NOI” is a non-GAAP financial measure management uses to assess a segment’s performance. The most directly comparable GAAP measure is net income (loss) attributable to common shareholders. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only property related revenue (which includes base rent, tenant reimbursements and other operating revenue, net of free rent and payments associated with assumed lease liabilities) less operating expenses and ground rent, if applicable. NOI also excludes deferred rent, related party management fees, interest expense, and certain other non-cash adjustments, including the accretion of acquired below-market leases and amortization of acquired above-market leases and below-market ground lease intangibles. Management uses NOI as a supplemental performance measure for our assets and believes it provides useful information to investors because it reflects only those revenue and expense items that are incurred at the asset level, excluding non-cash items. In addition, NOI is considered by many in the real estate industry to be a useful starting point for determining the value of a real estate asset or group of assets. However, because NOI excludes depreciation and amortization and captures neither the changes in the value of our assets that result from use or market conditions, nor the level of capital expenditures and capitalized leasing commissions necessary to maintain the operating performance of our assets, all of which have real economic effect and could materially impact the financial performance of our assets, the utility of NOI as a measure of the operating performance of our assets is limited. NOI presented by us may not be comparable to NOI reported by other REITs that define these measures differently. We believe that to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income (loss) attributable to common shareholders as presented in our financial statements. NOI should not be considered as an alternative to net income (loss) attributable to common shareholders as an indication of our performance or to cash flows as a measure of liquidity or our ability to make distributions. Annualized NOI, for all assets except Crystal City Marriott, represents NOI for the three months ended September 30, 2020 multiplied by four. Due to seasonality in the hospitality business, annualized NOI for Crystal

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City Marriott represents the trailing 12-month NOI as of September 30, 2020. Management believes Annualized NOI provides useful information in understanding our financial performance over a 12-month period, however, investors and other users are cautioned against attributing undue certainty to our calculation of Annualized NOI. Actual NOI for any 12-month period will depend on a number of factors beyond our ability to control or predict, including general capital markets and economic conditions, any bankruptcy, insolvency, default or other failure to pay rent by one or more of our tenants and the destruction of one or more of our assets due to terrorist attack, natural disaster or other casualty, among others. We do not undertake any obligation to update our calculation to reflect events or circumstances occurring after the date of this earnings release. There can be no assurance that the annualized NOI shown will reflect our actual results of operations over any 12-month period.

Same Store and Non-Same Store

“Same store” refers to the pool of assets that were in-service for the entirety of both periods being compared, except for assets for which significant redevelopment, renovation, or repositioning occurred during either of the periods being compared.

“Non-same store” refers to all operating assets excluded from the same store pool.

Definitions

GAAP

"GAAP" refers to accounting principles generally accepted in the United States of America.

In-Service

‘‘In-service’’ refers to commercial or multifamily assets that are at or above 90% leased or have been operating and collecting rent for more than 12 months as of September 30, 2020.

Formation Transaction

"Formation Transaction" refers collectively to the spin-off on July 17, 2017 of substantially all of the assets and liabilities of Vornado Realty Trust’s Washington, DC segment, which operated as Vornado / Charles E. Smith, and the acquisition of the management business and certain assets and liabilities of The JBG Companies.

JBG Legacy Funds

“JBG Legacy Funds” refers to the legacy funds formerly organized by The JBG Companies.

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CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

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Note: For complete financial statements, please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

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Note: For complete financial statements, please refer to the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020.

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EBITDA, EBITDAre AND ADJUSTED EBITDA (NON-GAAP)

(Unaudited)

Note: All EBITDA measures as shown above are attributable to common limited partnership units (“OP Units”).

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FFO, CORE FFO AND FAD (NON-GAAP)

(Unaudited)

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See footnotes on page 14.

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FFO, CORE FFO AND FAD (NON-GAAP)

(Unaudited)

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NOI RECONCILIATIONS (NON-GAAP)

(Unaudited)